‘value’ as a preferential judgment, whereas ‘values’ refer to the criteria that determine those preferential judgments (Holbrook, 1994). Thus, consumer values are deeply held, enduring beliefs, whereas consumer value results from the trade-off of the benefits and sacrifices associated with a particular good or service (Holbrook, 1994). Researchers investigate how consumers make decisions and trade off benefits and sacrifices ( Woodruff, 1997 and Zeithaml, 1988). Marketers also work to understand consumers' values, preferences, or beliefs; measure and categorize consumer lifestyles (psychographics); and develop different classifications.
In research pertaining to the economic value of customers, existing customers are valuable assets to a company ( Reichheld, 1996). Some customers have greater net present value than others, and the retention of unprofitable customers destroys value. The economic value of customers is an output of the value-creating process; customers are valuable to the company only if the company has something of value to offer them.
More recent marketing literature has developed two distinct research streams: the value of (augmented) goods and services, and the value of relationships. These streams in turn suggest several perspectives for industrial marketing.
‘value’ as a preferential judgment, whereas ‘values’ refer to the criteria that determine those preferential judgments (Holbrook, 1994). Thus, consumer values are deeply held, enduring beliefs, whereas consumer value results from the trade-off of the benefits and sacrifices associated with a particular good or service (Holbrook, 1994). Researchers investigate how consumers make decisions and trade off benefits and sacrifices ( Woodruff, 1997 and Zeithaml, 1988). Marketers also work to understand consumers' values, preferences, or beliefs; measure and categorize consumer lifestyles (psychographics); and develop different classifications.
In research pertaining to the economic value of customers, existing customers are valuable assets to a company ( Reichheld, 1996). Some customers have greater net present value than others, and the retention of unprofitable customers destroys value. The economic value of customers is an output of the value-creating process; customers are valuable to the company only if the company has something of value to offer them.
More recent marketing literature has developed two distinct research streams: the value of (augmented) goods and services, and the value of relationships. These streams in turn suggest several perspectives for industrial marketing.
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